This is a coiling stock chart taken this week from Scottish and Southern Energy.
We like the look of this chart because of the way price action has triangulated nicely, broken out and re-tested the upper resistance line of the triangle.
The other thing to consider here is the context in which the coiled stock chart has formed. See below:
We can see from this chart that we are approaching the all time high for this stock. If we get a large move from this breakout and move beyond this all time high for Scottish and Southern, we will be into new territory for this stock.
It could be a good opportunity to get in with a tight stop on the weekly chart.
As always, make your own trading decisions and the best of luck to you.